What is Transitional Relief

Transitional Relief Scheme for 2026/27

To support ratepayers facing large bill increases upon revaluation, the government is introducing a redesigned Transitional Relief Scheme. The Transitional Relief caps will be as follows for properties with a rateable value of:

• Up to £20,000 (£28,000 in London): in 2026-27 - 5%, in 2027-28 - 10% (plus inflation), in 2028-29 - 25% (plus inflation).
• £20,001 (£28,001 in London) to £100,000: in 2026-27 - 15%, in 2027-28 - 25% (plus inflation), in 2028-29 - 40% (plus inflation).
• Over £100,000: in 2026-27 - 30%, in 2027-28 - 25% (plus inflation), in 2028-29 - 25% (plus inflation).

Business Rates Transitional Relief Supplement

The government is introducing a 1p supplement to the relevant tax rate for ratepayers who do not receive Transitional Relief or the Supporting Small Business Scheme to partially fund Transitional Relief. This will apply for one year from 1 April 2026.

Transitional relief limits how much your bill can change each year as a result of revaluation.

This means changes to your bill are phased in gradually, if you’re eligible.

You get transitional relief if:

• Your property is in England and
• Your rates go up or down by more than a certain amount

To help pay for the limits on increases in bills, there also have to be limits on reductions in bills.

When will the scheme apply?

The relief applies to the property:

• at the time of revaluation and
• continues to apply to yearly increases and decreases until your bill reaches the full amount set by a revaluation

We will adjust your bill automatically if you’re eligible and this will show on the front of your bill.

2023 Transitional Relief Changes

The Transitional Relief scheme for the 2023 revaluation will not limit reductions in bills where there is a fall in the rateable value.